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Project Citation: 

Remmy, Kevin. Data and Code for: Adjustable product attributes, indirect network effects, and subsidy design: The case of electric vehicles. Nashville, TN: American Economic Association [publisher], 2026. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2026-03-25. https://doi.org/10.3886/E227721V1

Project Description

Summary:  View help for Summary This paper develops a structural model of endogenous product attribute choice in the presence of indirect network effects to study electric vehicle (EV) subsidies. Using data on the German EV market, I find that a support scheme almost doubled EV sales but substantially affected EVs' price and driving range. These adjustments create a trade-off between optimizing different policy objectives when designing subsidies. Large purchase subsidies maximize EV sales, whereas large charging station subsidies maximize consumer and total surplus. The results suggest that maximizing EV sales can lead to unintended consequences in the form of price and range adjustments.
Funding Sources:  View help for Funding Sources European Union's Horizon 2020 Research and Innovation Staff Exchange programme (681228); German Research Foundation (DFG) (CRC TR 224)

Scope of Project

Subject Terms:  View help for Subject Terms Structural modelling
JEL Classification:  View help for JEL Classification
      D12 Consumer Economics: Empirical Analysis
      D62 Externalities
      H23 Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
      L62 Automobiles; Other Transportation Equipment; Related Parts and Equipment
      Q55 Environmental Economics: Technological Innovation
Geographic Coverage:  View help for Geographic Coverage Worldwide (mainly Germany)
Time Period(s):  View help for Time Period(s) 2012 – 2021
Collection Date(s):  View help for Collection Date(s) 2019 – 2024
Universe:  View help for Universe Data on the German new car market and the roll-out public charging stations.
Data Type(s):  View help for Data Type(s) aggregate data; census/enumeration data; event/transaction data; images: photographs, drawings, graphical representations; program source code; text

Methodology

Unit(s) of Observation:  View help for Unit(s) of Observation Car model

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